Media doing well: Conroy

Communications Minister Stephen Conroy has hit back at suggestions by media houses and the Coalition that the industry is already “struggling” to cope with dramatic changes without regulatory reforms as well.

His comments came as the radio sector criticised the wide-ranging Convergence Review report released on Monday for containing “no detail” on proposals that would have major impacts on the industry.

After an Australian Information Industry Association event in Sydney yesterday, Senator Conroy said he did not want to be drawn into commenting on the Convergence Review before a formal government response but remarks by opposition communications spokesman Malcolm Turnbull were incorrect because media businesses were still profitable.

“I’m not quite sure I can keep a straight face and say media companies are struggling,” he said.

“I think there are some tough times still ahead from what the advertising sector tells me. [But] News Ltd continues to make a reasonable profit – and the TV stations, despite a very tough advertising market.”

Asked if the government would be able to pass any media reforms before the elections next year, when Labor is predicted to lose power, Senator Conroy said it was a matter of dealing with the “growing number of independents” in Parliament.

“Eighteen months is still a reasonable period and we continue, despite pop analysis, to maintain the numbers on the floor of Parliament.”

Despite the assurances, the radio sector hit out at the final report over a lack of detail and its recommendation for local content quotas on ­digital music channels.

The chief executive of industry lobby group Commercial Radio ­Australia, Joan Warner, said yesterday the report contained “no detail” on its proposal to abolish broadcast licence fees and replace them with a spectrum fee priced with a market-based approach.

“We don’t support anything that means we pay more for the spectrum we’re using,” she said.

She also criticised the recommendation that existing local music quotas on analog commercial radio be applied to digital commercial radio, arguing broadcasters were still ­trying to develop business models for their digital channels.

Ms Warner said it was “ridiculous” for the review to exempt evolving internet-based music services and not digital radio channels from quotas.

The Convergence Review is aimed at overhauling laws covering the media in the face of new technology, including the internet.